The company has announced that a Private Placement has been successfully placed, raising approximately NOK 505 million in gross proceeds through the allocation of 29,549,400 new shares at a subscription price of NOK 17.10 per share.
“We are pleased with the strong support Nykode has received from a group of international specialist investors and our shareholders, which strengthens the financial foundation to achieve our vision of building a leading immunotherapy company developing breakthrough medicines in a growing range of therapeutic areas. This is also an important step towards a potential listing on Nasdaq in the US to gain access to a wider shareholder base,” says Michael Engsig, CEO, Nykode Therapeutics.
The new issue will be used to move VB10.16 into early-stage cervical cancer where an even greater number of patients need a better and more well-tolerated treatment.”
The company intends to use the net proceeds from the private placement to advance clinical studies of VB10.16, including in adjuvant setting (post-surgery, recurrence prevention), continue pipeline expansion through internal and partnered programs, accelerate research activities to further improve Nykode’s technology platform and expand therapeutic scope including into autoimmune indications, and progress CMC activities. The balance will be used for other general corporate purposes, including general and administrative expenses and working capital.
“The immune response and sustained clinical results from Nykode’s clinical product candidates, together with the platform’s promising progress, have strengthened confidence in our technology. At the Capital Markets Day in New York, we outlined our strategy to create shareholder value by advancing our lead asset VB10.16 to market with FDA approval for a potential registration study in advanced cervical cancer and expansion into head and neck cancer. The new issue will be used to move VB10.16 into early-stage cervical cancer where an even greater number of patients need a better and more well-tolerated treatment. In addition, we can further invest in our research and clinical pipeline in autoimmune diseases, a commercially attractive new therapeutic vertical where we have established proof of concept in various autoimmune disease models,” adds Engsig.
Significant international investor participation
The Private Placement was multiple times oversubscribed and saw significant international investor participation. The existing shareholders represented on the Board of directors of the company that had indicated an interest to subscribe for Offer Shares of up to NOK 330 million in aggregate at launch did not participate in the Private Placement in order to allow new international investors to participate.
Following registration of the new share capital pertaining to the Offer Shares in the Private Placement with the Norwegian Register of Business Enterprises, which is expected to take place on or about 30 October 2023, the company will have an issued share capital of NOK 3,250,437.09, divided into 325,043,709 shares, each with a par value of NOK 0.01. J.P. Morgan SE, Jefferies GmbH and Van Lanschot Kempen N.V. have acted as Joint Global Coordinators and Joint Lead Bookrunners, with ABG Sundal Collier ASA (together with the Joint Global Coordinators, the “Managers”) having acted as Joint Bookrunner for the Private Placement.
A subsequent repair offering of new shares
The company intends to conduct a subsequent repair offering of new shares with gross proceeds of up to NOK 85,500,000, which is equivalent of up to 5,000,000 new shares, at a price of NOK 17.10 per share, being the same price as in the Private Placement, directed towards shareholders in the company as of 24 October 2023, as registered in VPS on 26 October 2023, who were not allocated Offer Shares in the Private Placement, and are not resident in a jurisdiction where such offering would be unlawful, or would (in jurisdictions other than Norway) require any prospectus filing, registration or similar action.
Photo of Michael Engsig: Nykode